How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry
Successful innovation calls for both exploitation of existing knowledge and exploration of new knowledge, or organizational ambidexterity, but we still know little about how organizations manage innovation by resolving the trade-off relationship between exploitation and exploration. We aim to addres...
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| Format: | Article |
| Language: | English |
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Universidade do Porto, Faculdade de Engenharia (FEUP)
2014-11-01
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| Series: | Journal of Innovation Management |
| Subjects: | |
| Online Access: | https://journalsojs3.fe.up.pt/index.php/jim/article/view/247 |
| _version_ | 1828431203611443200 |
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| author | Osamu Suzuki |
| author_facet | Osamu Suzuki |
| author_sort | Osamu Suzuki |
| collection | DOAJ |
| description | Successful innovation calls for both exploitation of existing knowledge and exploration of new knowledge, or organizational ambidexterity, but we still know little about how organizations manage innovation by resolving the trade-off relationship between exploitation and exploration. We aim to address this research gap by examining the relationship between an organization’s degree of exploitation orientation and its subsequent degree of organizational ambidexterity. We argue that organizations’ exploitation orientation negatively influences subsequent achievement of organizational ambidexterity because exploitation precludes subsequent exploration. However, this trade-off relationship between prior exploitation and subsequent exploration is attenuated when organizations are characterized by problemistic search, deliberate learning, or by speciation. Accordingly, these organizations’ degree of exploitation orientation more positively influences subsequent achievement of organizational ambidexterity. Our empirical analyses of 32 Japanese pharmaceutical firms’ new product developments over 1991 to 2000 support the argument. Our findings show that organizations may increase their degree of organizational ambidexterity by resolving, rather than circumventing, the trade-off relationship between exploitation and exploration, thereby proposing an alternative explanation of ambidexterity antecedents. |
| first_indexed | 2024-12-10T17:59:36Z |
| format | Article |
| id | doaj.art-bd31d2eefbbc4c2f8ca4b6de4ec02e05 |
| institution | Directory Open Access Journal |
| issn | 2183-0606 |
| language | English |
| last_indexed | 2024-12-10T17:59:36Z |
| publishDate | 2014-11-01 |
| publisher | Universidade do Porto, Faculdade de Engenharia (FEUP) |
| record_format | Article |
| series | Journal of Innovation Management |
| spelling | doaj.art-bd31d2eefbbc4c2f8ca4b6de4ec02e052022-12-22T01:38:50ZengUniversidade do Porto, Faculdade de Engenharia (FEUP)Journal of Innovation Management2183-06062014-11-0121476810.24840/2183-0606_002.001_0005247How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical IndustryOsamu Suzuki0Kwansei Gakuin UniversitySuccessful innovation calls for both exploitation of existing knowledge and exploration of new knowledge, or organizational ambidexterity, but we still know little about how organizations manage innovation by resolving the trade-off relationship between exploitation and exploration. We aim to address this research gap by examining the relationship between an organization’s degree of exploitation orientation and its subsequent degree of organizational ambidexterity. We argue that organizations’ exploitation orientation negatively influences subsequent achievement of organizational ambidexterity because exploitation precludes subsequent exploration. However, this trade-off relationship between prior exploitation and subsequent exploration is attenuated when organizations are characterized by problemistic search, deliberate learning, or by speciation. Accordingly, these organizations’ degree of exploitation orientation more positively influences subsequent achievement of organizational ambidexterity. Our empirical analyses of 32 Japanese pharmaceutical firms’ new product developments over 1991 to 2000 support the argument. Our findings show that organizations may increase their degree of organizational ambidexterity by resolving, rather than circumventing, the trade-off relationship between exploitation and exploration, thereby proposing an alternative explanation of ambidexterity antecedents.https://journalsojs3.fe.up.pt/index.php/jim/article/view/247innovationknowledge managementnew technologybusiness managementpharmaceutical industryresearch and development |
| spellingShingle | Osamu Suzuki How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry Journal of Innovation Management innovation knowledge management new technology business management pharmaceutical industry research and development |
| title | How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry |
| title_full | How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry |
| title_fullStr | How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry |
| title_full_unstemmed | How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry |
| title_short | How innovators resolve the exploitation-exploration trade-off? Evidence from the Japanese Pharmaceutical Industry |
| title_sort | how innovators resolve the exploitation exploration trade off evidence from the japanese pharmaceutical industry |
| topic | innovation knowledge management new technology business management pharmaceutical industry research and development |
| url | https://journalsojs3.fe.up.pt/index.php/jim/article/view/247 |
| work_keys_str_mv | AT osamusuzuki howinnovatorsresolvetheexploitationexplorationtradeoffevidencefromthejapanesepharmaceuticalindustry |